Magento Pricing: The Ultimate Guide of Use Magento for Every ecommerce. Check this out if you have or are considering a Magento store
Acquired by Adobe in 2018, Magento boasts of being “eCommerce Without Limits”, and in many ways, it delivers on that promise. It offers flexibility that other eCommerce platforms don’t, but even though it’s open-source software (read: free to install), there are Magento costs that you will likely have to pay.
Unless you’re a developer, graphic designer, and photographer in one, you’ll have to hire these digital creatives to create content for your store. If you’re migrating an existing store, you may only need to hire a developer. Either way, there are costs associated with using Magento as your platform of choice.
In this article, you will learn the details of Magento pricing and what businesses will most benefit from it. And if you read to the end, you will learn how to make your Magento eCommerce even more flexible with a headless storefront.
Who Will Benefit From Magento?
A medium to large-sized business, one that has a decent budget to spend on development costs or a business that has an in-house IT department.
Yes, the free version offers flexibility that other platforms don’t (more on that later), and there are no monthly fees, but getting your store up and running will rely heavily on the skills of the developer or development team you are using.
There are a lot more DIY aspects of using Magento, and it is not suitable for beginners. So if you’re launching your first store and have a limited budget, the cost of Magento may be out of your reach.
Magento eCommerce: Cost of Launching your online store
How much does Magento eCommerce cost?
It depends.
First, we must distinguish between Magento Open Source, Magento 2 Commerce and Magento 2 Commerce Cloud. The former is the free, open-source software, and the latter two are the paid enterprise versions. While Magento Open Source is free to download, expect developer fees to be around $15,000 to get your store looking and functioning how you want it to.
If you’re an established business with a budget, Magento 2 Commerce is a powerful and flexible platform allowing highly customizable looks and functionality. But it comes with a cost.
So how much does a Magento 2 website cost?
Magento enterprise pricing is based on the yearly revenue a business generates and starts at $22,000 per year and can go as high as $190,000 per year if the cloud version is chosen.
Themes for modern ecommerce
A pre-built Magento theme can be a cost-effective way to make your store look great. You also have the option of a custom-built theme, which of course, requires the skills and time of a developer. Expect to pay anywhere from $30 to $500 for a pre-built theme and several thousand more than that for a custom one.
Content Production Costs
Since Magento targets medium to large-sized businesses, chances are, you already have some pretty kick-ass product photos, copy, and video content. In any case, professional creatives can run anywhere between $25 to $250 per hour.
Development Costs
Whether you’re outsourcing development or using an in-house one, you’ll need to consider the costs and whether your in-house developer has the capacity to take on this project. Hourly rates for developers vary but expect to pay around $50-100 per hour.
Extension Costs of ecommerce website
Magento extensions allow you to add further functionality to your store, from smoother shopping cart experiences to customer rewards. There are over 5000 Magento extensions, many of which are free, but the paid ones range from $50 to $500.
Local Business Fees
Like any business, you’ll have to pay taxes and registration fees. These depend on where you’re located and your yearly revenue.
Recurring Cost of Running Magento website
In addition to the above yearly fees (which will increase as your business grows), there is the cost of ongoing dev and digital support. After launching your website, you will eventually want and need to make changes to your website and hire a developer to do so. Other costs to consider are photography and copywriting when new products are launched and marketing costs.
Domain for websites using Magento
If you don’t own your domain yet, it’s a relatively cheap startup cost of about $10-15 per year. However, if you want an existing domain that someone already owns, the price can go anywhere from several hundred dollars to thousands.
Ongoing Support for Magento store
Once you’ve launched your website, at some point in the near or far future, you will need the skills of a developer or digital creative again. Whether to add the latest must-have functionality or re-design the look of your website, make sure to include ongoing support costs into your budget.
Hosting for stores using Magento
Expect to pay around $200 monthly for managed hosting and less than that for unmanaged. Magento Commerce hosting will cost you upwards of $500 per month, but Magento Commerce Cloud includes hosting fees in the license fees.
Magento Enterprise Pricing
Let’s get a little deeper into Magento enterprise pricing – Magento Commerce and Magento Commerce Cloud, also known as Magento 2. Both offer unlimited customization that other platforms can only dream of, 24/7 support, advanced reporting and marketing tools, and built-in customer tools like rewards, wish lists, etc...The list goes on!
Magento Commerce Cloud goes beyond with even more features like cloud hosting, continuous infrastructure updates, enhanced security, global deployment, and more.
But as anything worth having, you will incur some serious costs. Below are the yearly costs for both Magento Commerce and Magento Commerce Cloud, based on yearly revenues.
Magento Pricing Review
Average Yearly Revenue | Magento 2 Commerce | Magento 2 Commerce Cloud |
< $1,000,000 | $22,000 | $ 40,000 |
$1,000,000 - $5,000,000 | $32,000 | $55,000 |
$5,000,000 - $10,000,000 | $49,000 | $80,000 |
$10,000,000 - $25,000,000 | $75,000 | $120,000 |
>$25,000,000 | $125,000 | $190,000 |
As you see from the above prices, Magento Commerce and Magento Commerce Cloud are not for beginners. However, if you’re an established business with a serious budget, it may be just the platform to bring your eCommerce dreams to life.
Cost of Updating from Magento 1 to Magento 2. Best Magento choice
Since support has been withdrawn from Magento 1 in June 2020, thousands of merchants have migrated to Magento 2. When considering the cost of migrating from one to the other, a few factors come into play:
- Will you need new creative assets?
- Will you be migrating ALL your data, including newsletter, customer, and order data?
- Will you need a custom-built theme, or will you use a pre-built one?
- How many extensions will you need to migrate?
All of the above will determine the cost of updating but expect to pay a minimum of several thousand for development time for the migration.
Security and Flexibility of Magento Ecommerce Website
While the open-source version of Magento is more susceptible to security flaws, it regularly releases patches to ensure your store stays secure. The downside is that you must install them yourself or hire a developer.
Remember that developers start at around $50-100. Magento Commerce, on the other hand comes with enhanced security features that allow you to protect your store. Still, you may want to hire a developer or security specialist even further to protect your store if you’re willing to pay for it.
Built for scaling, Magento Commerce will be able to support your store as it grows. In addition, you will be able to design your store look without the limitations of a theme. But again, everything comes at a cost. This is not your typical fill-in-the-blanks eCommerce platform that may never need a developer. There’s nothing wrong with platforms like that, and they’re especially useful for beginner store owners, but Magento is in a league of its own.
Who are Magento’s Competitors? Check it quickly and easily
Let’s take a look at some of the other platforms vying for your hard-earned money in the eCommerce world. Shopify Plus and BigCommerce Enterprise are some of Magento’s biggest competitors, offering custom enterprise solutions for eCommerce stores and used by some of the biggest brands in the world.
Each platform continues to innovate at the speed of light and each offers innovative and flexible solutions to those willing to pay.
Magento Commerce | Magento Commerce Cloud | Shopify Plus | BigCommerce Enterprise | |
Hosting | Self-hosted | Cloud-hosted | Cloud-hosted | Cloud-hosted |
Cost | Starting at $22,000 per month | Starting at $40,000 per month | $2000 + per month | $400 - $20,000 month |
Ease of use | Needs a developer | Needs a developer | Friendly, easy to use interface | Friendly, easy to use interface |
Customization | Virtually unlimited customization (development required) | Virtually unlimited customization (development required) | Highly customizable, with limits | Highly customizable, with limits |
Headless eCommerce and Magento
Headless eCommerce already allows you to separate your front-end from your back-end. With Magento’s flexibility options and accessible code, your store can truly look and function as you want. If you can dream it, we can build it! If you decide to use Magento’s open-source option, you can use your budget for a headless eCommerce developer to use that code rather than paying expensive SaaS fees.
From delivering amazing experiences to your customers to incredible site speeds, headless eCommerce and Magento are amazing power teams that can propel your store toward greatness.
The fundamental difference lies in the architecture. Magento has a monolithic structure, which can limit your ability to adapt quickly to changing customer expectations and emerging technologies. In contrast, headless commerce decouples the front-end and back-end, allowing you to innovate and customize the customer-facing side without disrupting the core functionality. This flexibility is crucial in the ever-changing world of ecommerce, where the user experience is paramount.
Headless eCommerce also excels in terms of speed and scalability. With a headless approach, you can swiftly adapt to the latest ecommerce technologies and trends, ensuring your online store remains cutting-edge. It's the future of commerce because it empowers you to stay ahead in a dynamic market.
The choice between Magento and headless commerce isn't about being better than the other; it's about selecting the right tool for your business's current and future needs. While Magento has its strengths, headless eCommerce offers a path to unparalleled innovation and adaptability. Join the ranks of forward-thinking online stores already embracing headless commerce to provide an exceptional shopping experience in 2023. Upgrade your ecommerce platform with headless commerce and secure your place at the forefront of ecommerce innovation.
The Final Word
Thinking of using the Magento eCommerce platform for your store? Perhaps your business is growing and you are thinking of migrating to a more powerful platform and finally have the budget to upgrade. While the cost of ownership for a Magento store may be a deterrent for some, the freedom and flexibility it gives may well be worth the price.
Ready to see how headless eCommerce can help you create your business? Check out our demo!
